ACE, “the helpful place” Hardware Corporation is much more than a hardware store. In 80 years, ACE has grown from a small cooperative band of Chicago hardware store owners to over 4800 locations in 70 countries. ACE’s colorful history includes selling chickens in 1943 to support the war effort, becoming a pioneer in the concept of self-service in 1952, and by 1972, ACE had initiated stores in all 50 states. ACE opened its first warehouse supercenter in 1993, and with over 1 million square feet, this location remains the largest hardware warehouse in the industry’s history.
Background and Benefits
In 1924, four enterprising hardware storeowners in Chicago, Richard Hesse, E. Gunnard Lindquist, Frank Burke, and Oscar Fisher, combined their stores’ buying power in order to increase market share and profits. This was the illustrious beginning of ACE. ACE Hardware Corporation is technically a co-operative. This means that the individual retailer has the authority to organize the overall business processes for his/her business unlike a full-fledged franchise that retains certain business controls and policies. Statistics show that the hardware industry is thriving today because of do-it-yourselfers who feel they can take on smaller jobs like landscaping and painting. ACE is expecting an annual increase of over 5% in this industry and that is good news for new storeowners.
How Much Does an ACE Hardware Franchise Cost?
To get in on the co-operative opportunity of owning an ACE Hardware Corporation franchise, you will first have to invest $5000 in the membership application followed by another $5000 in the initial stock ownership. You will have to have liquid capital of $250,000 with a total investment of between $650,000 and $1million+ based on a 12,000 square foot retail store. Of this amount, ACE will allow you to borrow between $390,000 and $740,000 (depending on store size) and they will even help you do it. ACE also offers qualified individuals their exclusive incentive package of up to $195,000 that can be utilized for the training program, staff services, store design and set up, and even an inventory discount of up to $110,000.
What We Like
ACE Ranked #5 on Franchise Times’ 200 list for three consecutive years. Entrepreneur Magazine ranked ACE #6 among the Top 500 Franchises. In 2008, Aces was ranked "Highest in Customer Satisfaction among Home Improvement Stores Two Years in a Row" by J.D. Power and Associates. According to an independent Gallup study, ACE Hardware’s name is one of the most widely recognized trademarks in America. ACE representatives say they continue to grow because of the level of service ACE provides their loyal customers, but it is apparent that the family environment ACE provides their employees and franchisees is also a contributing factor.
Pros
- Products - Access to 10,000 proprietary ACE label products
- Financing and Incentives - Financing programs for qualified individuals
Cons
- None - Unlike most Megabrands, ACE has simplified the process for becoming part of the team. If you like the concept and have the funds, ACE may be the place for you.
ACE Hardware Franchise Information
Business Established: 1924Franchising Since: 1976
Franchise Fee: None. $5,000 membership Application + $5000 mandatory stock purchase.
Total Investment: $895,000 to 1,370,000 includes land.
